The EUR/JPY pair has been trading sideways since the 21st of January 2016, with the price ranging between the levels of 128.73 and 127.36.
During the course of the day on Tuesday, the pair initially fell, but found enough support near the 127.82 level to turn things around and form a bit of a hammer. Today, the pair fell from 128.73 down to 128.29 at the time of writing. In the event that the bearish pressures persist and the cross breaks below the bottom of the hammer at 127.73, the pair could fall down to 127.13 and 126.16 in extension.
Conversely, in the scenario where the buyers resume their previous activity and manage to push the pair above 128.73, the price could escalate up to the 130 handle, reaching the levels of 129.06 and 130.01 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.